Physical Gold vs. Paper Gold: The Ultimate Disconnect

Physical Gold vs. Paper Gold: The Ultimate Disconnect (Casey Research, April 23, 2013):

How can we explain gold dropping into the $1,300 level in less than a week?

Here are some of the factors:

  • George Soros cut his fund holdings in the biggest gold ETF by 55% in the fourth quarter of 2012.
  • He was not alone: the gold holdings of GLD have contracted all year, down about 12.2% at present.
  • On April 9, the FOMC minutes were leaked a day early and revealed that some members were discussing slowing the Fed $85 billion per month buying of Treasuries and MBS. If the money stimulus might not last as long as thought before, the “printing” may not cause as much dollar debasement.
  • On April 10, Goldman Sachs warned that gold could go lower and lowered its target price. It even recommended getting out of gold.
  • COT Reports showed a decrease in the bullishness of large speculators this year (much more on this technical point below).
  • The lackluster price movement since September 2011 fatigued some speculators and trend followers.
  • Cyprus was rumored to need to sell some 400 million euros’ worth of its gold to cover its bank bailouts. While small at only about 350,000 ounces, there was a fear that other weak European countries with too much debt and sizable gold holdings could be forced into the same action. Cyprus officials have denied the sale, so the question is still in debate, even though the market has already moved. Doug Casey believes that if weak European countries were forced to sell, the gold would mostly be absorbed by China and other sovereign Asian buyers, rather than flood the physical markets.

My opinion, looking at the list of items above, is that they are not big enough by themselves to have created such a large disruption in the gold market.

The Paper Gold Market

Read morePhysical Gold vs. Paper Gold: The Ultimate Disconnect

The Powers That Be Don’t Want Sovereign Bonds … They Want Gold

The Powers That Be Don’t Want Sovereign Bonds… They Want Gold (ZeroHedge, Nov 19, 2012):

Last week I outlined the issue of collateral and how it is the most critical issue in the financial system today. For a review of that article, click here now.

If you want further evidence that the financial elites are already preparing for a default from Spain and a collateral crunch, you should consider that the large clearing houses (ICE, CEM and LCH which oversee the trading of the $700+ trillion derivatives market) have ALL begun accepting Gold as collateral.

Gold as Collateral Acceptable for Margin Cover Purposes

From 28 August 2012 unallocated Gold (Loco London) will be accepted by LCH.Clearnet Limited (LCH.Clearnet) as collateral for margin cover purposes.

This addition to acceptable margin collateral will be subject to the following criteria;

Read moreThe Powers That Be Don’t Want Sovereign Bonds … They Want Gold

Super Storm = Breakdown Worldwide Grid System = Worldwide Nuclear Meltdown

For your information.

See also:

– Study: Nuclear Meltdown In One Of The Reactors In Operation Worldwide Is Likely To Occur Once In 10 To 20 Years – Map Shows Risk Of Heavy Contamination

Expert Warns: 100% Certainty of Total Catastrophic Failure of the Entire Power Infrastructure Within 3 Years

Interview With Former US Army Intelligence Officer And Bestselling Author James Wesley Rawles: Global Economic Collapse – Gun Confiscation – How To Survive The End Of The World – If The Power Grid Goes Down We Are In A Massive Die Off Situation Where Literally More Than 50% Of The Population Of The Country Could Die In Just One Winter (Video)


Super Storm = Breakdown Worldwide Grid System = Worldwide Nuclear Meltdown (Before It’s News, May 23, 2012):

Solar SuperStorms Coming…

As the sun boils up increased numbers of sunspots, we here on Earth need to be wary of the resultant solar flares and CME’s that are often hurled in our direction. An X-class solar flare can reach the Earth in just 8 minutes (CME’s, Coronal Mass Ejections, can take days). If an X-class flare… or Coronal Mass Ejection from the Sun… is of sufficient magnitude… it could bring down our electrical power grid and end life as we know it…
for a long period of time… or forever…

A solar Super Storm of the size and duration of the ‘Carrington Event’ of 1859 will down the world’s power grid infrastructure for years… Think about that for a minute… No food… water… gasoline… radio… internet…

In short: almost nothing will be left… Hundreds of millions in Europe and the US would surely die. But this is not all… All nuclear reactors will melt down… because the cooling of the reactors fails…. Thus, a Super Solarstorm has the potential to cause a Fukushima type accident at every nuclear power plant in the world!
And worse… The fuel assemblies in the spent fuel pool will melt… Catch fire, and radioactive fission products will be released into the atmosphere… Because there is at least 10 times more spent fuel then in the reactors… The world will be confronted with the equivalent of thousands nuclear reactors melting down…! Will this be the end of human life on earth…?

Read moreSuper Storm = Breakdown Worldwide Grid System = Worldwide Nuclear Meltdown

Missing $1.6 Billion MF Global Funds: Traced!

Before:

Congressional Investigators: MF Global’s Jon Corzine Ordered Funds Moved To JP Morgan

CFTC Pulls ‘JPMorgan Whistleblower’ Letter


Missing $1.6 Billion MF Global Funds: Traced!(New York magazine, April 25, 2012):

The high-stakes game of lost-and-found for the missing $1.6 billion MF Global funds apparently reached a conclusion on Tuesday. According to CNN Money, investigators hunting the funds in the wake of the Jon Corzine–led brokerage firm’s collapse located the massive sums of customer money. “We can trace where the cash and securities in the firm went, and that we’ve done,” James Giddens, a trustee overseeing MF Global’s liquidation, told the Senate Banking Committee on Tuesday, adding that the investigation is “substantially concluded.”

Read moreMissing $1.6 Billion MF Global Funds: Traced!

Congressional Investigators: MF Global’s Jon Corzine Ordered Funds Moved To JP Morgan

DON’T MISS:

CFTC Pulls ‘JPMorgan Whistleblower’ Letter:

However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

Flashback:

Max Keiser And Gerald Celente On MF Global Bankruptcy Implications – The JP Morgan Connection – Goldman Sachs – CME (‘Chicago Mafia Exchange’) – Gold, Silver – Syria, Iran – Entire Financial System Collapsing, One Big Global Ponzi Scheme – False Flag, WW III – Bank Holiday, Economic Martial Law – ‘YOUR MONEY ISN’T SAFE’ (Video)


MF’s Corzine Ordered Funds Moved to JP Morgan, Memo Says (Bloomberg, Mar 23, 2012):

Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.

Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.

Read moreCongressional Investigators: MF Global’s Jon Corzine Ordered Funds Moved To JP Morgan

Limited Edition Silver Proof: The Three Elements In Silver Manipulation

Limited Edition Silver Proof (ZeroHedge, Jan 10, 2012):

Commissioner Bart Chilton of the CFTC gave an interview this week with Jim Puplava that should interest you.

A number of subscribers asked me if I would comment on what Commissioner Chilton had to say. In commenting, I can’t help but try to be as objective as possible. For the record, I commend Chilton for the role he has taken on the important issues, like position limits, concentration and in addressing allegations of manipulation in silver. He is the only commissioner to have done so. I believe there would be no ongoing silver investigation were it not for him. I think he is one of the good guys and I started writing to him about these issues in 2007.

I agree with most of what Commissioner Chilton had to say, particularly about concentration and position limits and manipulation. I’m glad the interview was mostly about potential manipulation in the silver market. I’m going to skip over all the things I agree with Chilton on and confine my remarks to where I disagree with him. Agreement can be boring. Even though the disagreements are few, I believe they go to the heart of the matter.

Chilton pointed out that it is difficult to prove manipulation in a court of law. He indicated that there are three elements necessary to prove manipulation – the intent to manipulate, the ability to manipulate and the success in the manipulation. I accept his legal definition. Where I respectfully disagree with him is in the degree of difficulty in establishing all three elements in the silver manipulation.

Let’s go through the three elements.

Let’s forget for a moment that silver has been under investigation by the CFTC’s Enforcement Division for almost three and a half years and that countless civil lawsuits have been filed against JPMorgan for allegations of silver manipulation in 2008. Let’s just focus on the last year, when silver experienced two separate 35% price declines in a matter of days. Such a decline in a world commodity for no observable reason. Yet it happened twice in silver within months.

As I have written recently, as a result of the second silver price takedown in September, a tight-knit group of commercials traders bought the equivalent of 165 million ounces in net COMEX futures contracts on the price decline. This is equal to 22% of the world’s annual 740 million oz silver mine production. These same traders came close to buying the same amount in the big May silver price decline as well. This is an extraordinary amount of silver futures, much larger than any manipulative long position attributed to the Hunt Bros. in 1980. It is not possible to buy such a large amount of silver by accident. It had to be intentional. There is the element of intent that Commissioner Chilton speaks of.

The next element necessary to prove manipulation is the ability to manipulate by a concentrated position or otherwise (collusion among different traders). It would seem that the ability to manipulate is also self-evident, as it has been done on more than one occasion in silver. This also ties into Commissioner Chilton’s third element, namely, success being brought about by intent and the ability to manipulate. It couldn’t have been more successful for the COMEX commercial crooks than the results they achieved (at great cost to innocent investors and traders).

I think the problem that Commissioner Chilton and the agency are having is that they have convinced themselves they need proof by wire-taps and emails and other incriminating documentation (like actual confessions) before they can prove manipulation in silver. But the COMEX commercial crooks are not likely to accommodate them. The Commission has something better than that already in hand, namely, the very data that I rely on in analyzing the market. The Commission should stop wishing and waiting for evidence to drop out of the sky and just study the COT and Bank Participation statistics that they produce on a regular basis.

Because it appears so easy for the Commission to prove a silver manipulation on the basis of the three elements outlined by Commissioner Chilton, my guess is that there is something else holding the agency back from ending this scam. They just don’t want to end it. Perhaps there is a political motive or the knowledge that JPMorgan and the CME may be too big to sue. It’s hard to see how the three elements can’t be proved by the public data.

Read moreLimited Edition Silver Proof: The Three Elements In Silver Manipulation

Max Keiser And Gerald Celente On MF Global Bankruptcy Implications – The JP Morgan Connection – Goldman Sachs – CME (‘Chicago Mafia Exchange’) – Gold, Silver – Syria, Iran – Entire Financial System Collapsing, One Big Global Ponzi Scheme – False Flag, WW III – Bank Holiday, Economic Martial Law – ‘YOUR MONEY ISN’T SAFE’


YouTube Added: 17.12.2011

Description:

In this edition of the show Max interviews Gerald Celente from Trendsjournal.com.

Gerald Celente is a trends forecaster who was recently defrauded by MF Global run by former New Jersey governor, Jon Corzine, who was also former head of Goldman Sachs.

When MF Global collapsed, client cash was taken and apparently transferred to creditors, like JP Morgan.

This commingling of funds has violated the very foundation of the futures market and we talk to Celente about whether he will ever invest money with a brokerage again?

Eric Sprott Fights PM Manipulation Fire With Fire: Calls Silver Producers To Retain Silver Produced As ‘Cash’

See also:

Eric Sprott To Buy $1.5 BILLION In PHYSICAL Silver

Flashback:

James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System

US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SEIZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!


Eric Sprott Fights PM Manipulation Fire With Fire: Calls Silver Producers To Retain Silver Produced As “Cash”

In what is likely the most logical follow up to our post of the day, namely the news of the lawsuit between HSBC and MF Global over double-counted gold, or physical – not paper – that was “commingled” via rehypothecating or otherwise, we present readers with the monthly note by Eric Sprott titled “Silver Producers: A Call to Action” in which the Canadian commodities asset manager has had enough of what he perceives as subtle and/or not so subtle manipulation of the precious metal market, and in not so many words calls the silver miners of the world “to spring to action” and effectively establish supply controls to silver extraction to counteract paper market manipulation in the paper realm by treating their product as a currency and retaining it as “cash”. To wit: “instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver OUTSIDE OF THE BANKING SYSTEM. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine? Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals. And it serves to remember that thanks to 0% interest rates, banks don’t pay their customers to take on those risks today.” And the math: “If silver miners were therefore to reinvest 25% of their 2011 earnings back into physical silver, they could potentially account for 21% of the approximate 300 million ounces (~$9 billion) available for investment in 2011. If they were to reinvest all their earnings back into silver, it would shrink available 2011 investment supply by 82%. This is a purely hypothetical exercise of course, but can you imagine the impact this practice would have on silver prices?” And there you go: Sprott ‘reputable’ entity to propose to fight manipulation with what is effectively collusion, which in the grand scheme of things is perfectly normal – after all, all is fair in love and war over a dying monetary model. Who could have thought that the jump from “proletariats” to “silver miners” would be so short.

From Eric Sprott

Silver Producers: A Call to Action

Read moreEric Sprott Fights PM Manipulation Fire With Fire: Calls Silver Producers To Retain Silver Produced As ‘Cash’

Gerald Celente: ‘IT’S FASCIST. CAN’T YOU SEE IT?’ – ‘It’s A TAKEOVER’ – ‘Hail Obama!’ – ‘The United States Has Become One Big Warsaw Ghetto’

A MUST-SEE!

And watch Joe Biden in the second video!

See also:

The Federal Reserve And The $16 Trillion Bankster Bailout


If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.
– New York Post

When CNN wants to know about the Top Trends, we ask Gerald Celente.
– CNN Headline News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about.
– CNBC

Those who take their predictions seriously … consider the Trends Research Institute.
– The Wall Street Journal

A network of 25 experts whose range of specialties would rival many university faculties.
– The Economist


YouTube Added: 03.12.2011


YouTube Added: 03.12.2011

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– Constitutional lawyer (Yale Law School graduate) & Founder Of Oath Keepers Stewart Rhodes: Senate Bill Declares War On Americans (Video)

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– FOX News: Freedom Watch – Judge Napolitano Interviews Rand Paul On Unconstitutional INDEFINITE DETENTION Bill S. 1867 (Video)

– InfoWars: Senate Bill Would Allow US Military To Indefinitely Detain Americans Without Charge Or Trial Anywhere In The World

– Mother Jones: Is the US Getting Domestic Indefinite Military Detention (Also For US Citizens And Legal Permanent Residents) For Thanksgiving?

It Gets More Bizarre: MF Global Mixed Funds, Transferred Abroad

Gerald Celente on MF Global (MUST-LISTEN!!!):

Gerald Celente Endorses Ron Paul For President – ‘The Entire Economic System Is Collapsing’ – ‘Fascism Has Come To America In Every Form’ (Video – Nov. 29, 2011):


Exclusive: MF Global mixed funds, transferred abroad (Reuters, Dec. 3, 2011):

WASHINGTON – Regulators investigating the collapse of MF Global have determined that the firm combined money between securities and futures accounts owned by customers, and transferred funds outside the country to at least one entity, a source said on Friday.

“The further we get into (the investigation) the more complex it is … but we’re making progress,” the source said, adding that the commingling and transferring of money is making it harder for regulators to determine what money belongs where.

MF Global took futures segregated money and put it into the account for customer securities, essentially mixing futures and securities that were both owned by customers, said an official familiar with the matter.

Until now, it was believed that only customer futures accounts were affected.

The source also told Reuters that MF Global had been using customer funds for “several days if not weeks” rather than just a few days before the firm collapsed.

Regulators had previously thought the firm was using customer funds on the Thursday and Friday before it filed for bankruptcy on October 31.

CME Group, the Chicago exchange where MF Global traded, said it had reviewed the company’s books a week before the bankruptcy and found no issues with the customer money.

Read moreIt Gets More Bizarre: MF Global Mixed Funds, Transferred Abroad